Debt Entities

Debt

The Debt section covers all parameters which are connected to the debt financing through banks. Typically project financing instruments for renewable energies (for now without company current accounts) are considered.

Input Field

Description

Unit

Presetting

Name

Debt tranche name

Free text

"Debt" + Index

Loan Type

The following loan types are supported:

Term Loan	A Term Loan is issued completely at the beginning and reimbursed completely at the end of the Loan Period. Interest payments becoming due during the Loan Period.
Construction Loan	A Construction Loan is issued piece by piece at different Issuing Dates and reimbursed completely at the end of the Loan Period. Interest payments becoming due during the Loan Period pending on the Construction Loan interest rate. Further information regarding the construction loan can be found here: Construction Loan

Selection

Term Loan

Driver

The available drivers per section are listed on the following page: Driver

Selection

Fix

Value

Input of a value proper to the selected driver.

Value in combination with driver

0

Issuing Date

The Debt tranche Issuing Date is set with a Date Choice Box. For example: "Issuing at Transaction", this means Transaction + 0 months.

When the Issuing is before the Transaction Date (TRX), the book value is calculated automatically per Transaction Date as corrected Value per Transaction.

The entered month corresponds to the last day of this month. For example: A Due Date 01 /2015 means that the Issuing occurs per 01.31.2015 and the corresponding interest and reimbursements are calculated effective from 02.01.2015.

Date Choice Box

Transaction

Consolidation Date

(Loan Type = Construction Loan)

The Construction Loan is issued on different Issuing Dates. On the basis of different Issuing segments these dates can be determined.

Add	With this button a new tranche can be added to the Construction Loan.
Remove	With this button an existing tranche can be removed from the Construction Loan.
Tranche Size	From the second segment on the Construction Loan tranches can be set here in percent of the whole Construction Loan. The first tranche is calculated automatically.

Selection

Interest Construction

(Loan Type = Construction Loan)

Annualized interest rate (nominal) which is executed on the Construction Loan of the previous period (this means after redemption of the previous period respective before redemption of the actual period). The interest charge is defined by the Method of Payment allocation (Interest) for the fixed Interest Period since Issuing Date. For periods afterwards the Longterm Interest Rate is used.

Percent nominal per year

0%

Loan Period

The Loan Period in years. With the end of the loan the loan amount has to be reimbursed.

Years

0

Redemption Mode

The following Redemption Modes are available:

Linear	Linear Redemption, this means the Issuing Value is divided by the redemption periods less redemption free periods and the resulting redemption value is constantly considered in the Cashflow Statement.
Annuity	Annuity, this means the sum of interest and redemption value are considered as a constant debt service in the Cashflow Statement.
Bullet	Bullet Redemption, this means the whole loan is reimbursed at the end of the loan period.
Sculpting	See more details regarding the debt sculpting under following link: Sculpting

Selection

Linear

Interest for Annuity Calculation (Redemption Mode = Annuity)

Interest input in % or bps for the Annuity Redemption calculation. This interest rate is only used for the calculation of the redemption amounts and not for the actual interest payments.

%

0

Redemption Free Period

Redemption Free months/years since Issuing Date.

Months/Years since Issuing Date

0 months

Redemption Frequency

Frequency of the Redemptions since Issuing Date. For example: "quarterly", this means every 3 months. Compare the same logic in Payment Frequency at Methods of Payment.

Months

monthly

Interest

Annualized interest rate (nominal) in % or bps which is executed on the Debt value of the previous period (this means after redemption of the previous period respective before redemption of the actual period). The interest charge is defined by the Method of Payment allocation (Interest) for the fixed Interest Period since Issuing Date. For periods afterwards the Longterm Interest Rate is used.

The Interest is composed by the Base Rate and the Margin:

Base Rate	Defined Interest Base Rate.
Margin	Additional Margin on the Base Rate in % or in basis points (bps).

%

0%

Interest Period Fixed

Valid Period of the interest rate. For periods afterwards the Longterm Interest Rate is used.

Loan Period	The fixed Interest Period is valid for the whole Loan Period. Thus the longterm Interest Rate does not apply.
Custom	The fixed Interest Period is temporary. A time period in years has to be defined for the interest. After this time period, the longterm Interest Rate applies.

Fixed Interest Period = 0

A fixed interest period of Debt Tranches or Shareholder Loans of 0 years and a longterm interest rate of 0% can lead to an unintended errors! The interest according to the Debt Tranche or Shareholder Loan is in this case 0% despite a different interest input of for example 4% because in this case, the longterm interest rate of 0% is adopted after the fixed interest period of 0 years.

Years since Issuing Date

0

Capexes (Driver = Capex)

Selection of the Capex costs which are considered for the Debt value.

All	All existing Capex entities are considered.
Some	With "Some" individual Capex entities can be selected, which are considered for the Debt calculation.

Method of Payment (Interest)

Selection of the Method of Payment which is used for Interest payments:

Matched to Redemption	The interest payments matches with the Redemption payments. With Redemption payments every quarter for example, the interest payments will also occur every quarter at the same date.
Assign Method of Payment	The interest payments occur according to the Method of Payment: Allocation of a Method of payment. For example: "first time at Transaction, every 3 month with a Target of 2 months". When no Method of Payment is used, the Profit & Loss statement is consistent with the Cashflow statement. Affected net current assets have a value of 0 in the Balancesheet.

Method of Payment allocation

None

Calculation

Debt affects the Debt calculation.